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Top Research Reports for Walmart, AstraZeneca & Broadcom

Mark Vickery

Monday, October 21, 2019

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Walmart (WMT), AstraZeneca (AZN) and Broadcom (AVGO). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

Walmart’s shares have outperformed the Zacks Supermarkets industry year to date (27.9% vs. 23.6%). The Zacks analyst believes that factors such as the company’s focus on strengthening e-commerce and store operations aided the company to retain a sturdy comps trend in first-quarter fiscal 2019, wherein earnings marked its fifth straight beat.

Further, U.S. comps rose for the 19th straight time. Also, e-commerce sales surged on robust Walmart.com and online grocery performances. Encouragingly, e-commerce sales are expected to rise nearly 35% in fiscal 2020. The company is also making efforts to improve its International unit by shifting focus to profitable countries.

However, the addition of Flipkart was a drag on Walmart’s operating income. Moreover, transportation costs, a compelling pricing strategy and tariff-related worries are threats to margins. Nonetheless, the Flipkart deal bodes well for the long term.

(You can read the full research report on Walmart here >>>)

Shares of AstraZeneca have gained 13.2% in the past six months against the Zacks Large Cap Pharmaceuticals industry’s rise of 3.5%. The Zacks analyst believes that AstraZeneca’s core products like Nexium, Crestor and Seroquel are facing generic competition, which is hurting sales.

The diabetes franchise is also facing stiff competition while pricing pressure is hurting sales in the respiratory unit. Nonetheless, AstraZeneca has returned to product sales growth mainly on the back of its cancer medicines, Lynparza, Tagrisso and Imfinzi, which should keep driving revenues. Several launches are underway across each of the therapeutic areas, Oncology, CV metabolism and Respiratory.

Cost-cutting efforts should drive earnings. AstraZeneca also has a promising late-stage pipeline. Its shares have outperformed the industry so far this year. The company has a positive record of earnings surprises in the recent quarters. Estimates have gone down slightly ahead of the Q3 earnings release. 

(You can read the full research report on AstraZeneca here >>>)

Broadcom’s shares have lost 3.1% over the past three months against the Zacks Electronics - Semiconductors industry’s decline of 0.3%. The Zacks analyst believes that Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well positioned to address the needs of rapidly growing technologies like IoT and 5G.

Further, strong ties with leading OEMs across multiple target markets are expected to help the company gain key insights into the requirements of customers. Moreover, the company intends to strengthen presence in the infrastructure software vertical particularly.

In this regard, acquisition of CA and Symantec’s Enterprise Security Business remain extremely significant. Nonetheless, the company faces intensifying competition and integration risks due to frequent acquisitions. The company’s leveraged balance sheet and customer concentration are concerns.

(You can read the full research report on Broadcom here >>>)

Other noteworthy reports we are featuring today include GlaxoSmithKline (GSK), Intuitive Surgical (ISRG) and Anthem (ANTM).

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Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

Today's Must Read

E-commerce Sales to Fuel Walmart (WMT), Soft Margins a Woe

AstraZeneca (AZN) Rides on Solid Pipeline, Drug Launches

Broadcom (AVGO) Banks on Portfolio Strength & Acquisitions

Featured Reports

Glaxo's (GSK) Pipeline Growing Amid Generic Woes for Advair

The Zacks analyst likes Glaxo's efforts to boost its pipeline, especially oncology. However, a generic of its top-selling drug, Advair has been launched which is eroding the drug's sales.

Da Vinci Platform Aids Intuitive Surgical (ISRG) Amid Rivalry

Intuitive Surgical has been consistently gaining from its flagship da Vinci platform. The Zacks analyst is however apprehensive about intense competition in the global MedTech space.

Strategic Initiatives Aid Anthem (ANTM), Rising Costs Hurt

Per the Zacks analyst, a number of acquisitions and collaborations have helped it enhance its capabilities and boost its Medicare business.

Express Scripts Buy, Revenue Growth Aid Cigna (CI)

Per the Zacks analyst, the buyout of Express Scripts has diversified Cigna's operations opening up new revenue streams.

Target's (TGT) Omnichannel & Store Expansion to Boost Sales

Per the Zacks analyst, Target's focus on enhancing omni-channel capacities, remodeling stores and expanding same-day delivery options are likely to fuel top-line growth.

Solid Acquisitions Aid, Rising Expenses Hurt Humana (HUM)

Per the Zacks analyst, a number of acquisitions have helped Humana expand its portfolio, which in turn, aided its top-line.

Energizing the Future Plan to Aid FirstEnergy's (FE) Growth

Per the Zacks analyst, FirstEnergy's Energizing the Future plan will add to the company's overall operational strength.

New Upgrades

Robust Portfolio & Strong Clientele Drives Paylocity (PCTY)

Per the Zacks analyst, Paylocity holds a dominant position in the payroll processing and HCM market, primarily due to its robust product portfolio.

Low Debt & Strong Product Portfolio Aid National Steel (SID)

Per the Zacks Analyst, National Steel is poised to capitalize on the growing demand for steel backed by its diversified business structure, solid product portfolio and focus on deleveraging.

SkyWest (SKYW) Strong on Fleet Modernization Efforts

Per the Zacks analyst, the carrier's measures to modernize its fleet and streamline operations are encouraging. Its initiatives to add shareholder value are also appreciative.

New Downgrades

Ericsson (ERIC) Stifled by High Costs Amid Fierce Competition

Per the Zacks analyst, despite commercial 5G deal wins in an extremely competitive environment, Ericsson's near-term operating margin remains challenging due to high associated costs.

High SG&A Costs Likely to Hurt Ulta Beauty's (ULTA) Margins

Per the Zacks analyst, rising SG&A expenses has been a hurdle for Ulta Beauty. Due to such increasing SG&A costs, management expects operating margin deleverage of 60-70 bps in fiscal 2019.

Soft Display & Optical Business Mar Corning's (GLW) Prospects

Per the Zacks analyst, lower-than-estimated level of activity within the Display Technologies and Optical Communications business segments takes a heavy toll on Corning's growth trajectory.

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Walmart Inc. (WMT) : Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report
GlaxoSmithKline plc (GSK) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Broadcom Inc. (AVGO) : Free Stock Analysis Report
Anthem, Inc. (ANTM) : Free Stock Analysis Report
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